Great read Tony. And, I’m going to keep saying this (I’m sure people are annoyed by it by now) but this is another advantage of index funds!
The truth is that not everyone has the time to do their own investment research. My mom is a nurse. She works 12 hour shifts. She simply doesn’t have the time to spend hours (read:days or weeks) on researching stocks.
Not to mention that many people don’t have the skill required to do stock research. It should come as zero surprise that predicting the future is ridiculously difficult. Even if you’re not a technical analyst, you still need to be comfortable with statistics, corporate finance, among other topics.
If you’re a truck driver working 16+ hours a day, you’re just not going to have time to educate yourself on those topics. (Not to mention if you also have children to raise).
Index investing requires little research to get started. Particularly, if you invest in a fund of funds (which has geographical diversification), you could arguably invest in that one fund and nothing else.
I’m going to write a series of articles on the pros of index investing over active investing, specifically for beginners. That way, I won’t have to write these long comments anymore haha 😂